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Gaylord Texan Resort Convention Center December 11-12, 2008

Objective. Identify some of the types of conflict that can exist in an business organizationExplain and discuss how Executive S

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Gaylord Texan Resort Convention Center December 11-12, 2008

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    1. Gaylord Texan Resort & Convention Center December 11-12, 2008 Introductions: Bob Stahl Roger LindgrenIntroductions: Bob Stahl Roger Lindgren

    2. Objective Identify some of the types of conflict that can exist in an business organization Explain and discuss how Executive S&OP can provide leadership with the tools and structure to raise and resolve that conflict in a defined and disciplined fashion Provide real life examples

    3. What is Sales&Operations Planning . . .

    4. What is Executive S&OP? Sales & Operations Planning is a Executive Decision-Making Process to Balance Demand & Supply (at the volume level) is The forum for setting Relevant Strategy & Policy (aligning human energy) and Integrates Financial & Operating Plans (update/validate the Annual Business Plan) Top Management’s Handle on the Business

    5. An Essential Point . . . Executive S&OP is essential for the other pieces of Sales & Operations Planning to work at their best.

    6. Types of Conflict . . . Implementation conflict(s) Constituency conflict(s) Business Goal conflict(s) Organizational outlook conflict(s) Strategic conflict(s) Forecasting conflict(s) and many more . . .

    7. Implementation Conflicts . . .

    8. Constituency Conflicts . . .

    9. A Couple of Truisms When a company is trading off one constituency against another, it’s on a slippery slope Being able to serve all constituencies has a lot to do with timing: In the short term, the customer is king Proper prior planning is necessary to serve all constituencies well (Doesn’t happen by accident) Executive S&OP is the tool to set conditions for success with regard to Supply Chain performance

    10. The mission of a commercial enterprise???? Can not longer compete on ONE thing! Getting to AND . . . Diminishing OR Demand Driven vs Supply Driven How to make Mfg a ‘competitive weapon’? The mission of a commercial enterprise???? Can not longer compete on ONE thing! Getting to AND . . . Diminishing OR Demand Driven vs Supply Driven How to make Mfg a ‘competitive weapon’?

    11. Organizational Conflicts . . .

    12. Process vs Personality Driven Organizations

    13. Top Mgt. and Executive S&OP Top Management = The Leader of the Business (General Mgr, Pres., COO) + VP Sales &/or Marketing VP Operations VP Finance VP Development . . . others Need to be Hands-On with the ES&OP Process:

    14. Strategic Conflicts . . .

    15. For Example . . . Capacity Planning =Strategy Question ?? Lead Capacity - Invest in capacity before customer orders materialize (That is, add to planned “demonstrated capacity” proactively with specific actions based on forecast.) Tradeoff: market share for profit Lag Capacity - Invest in capacity after customer orders materialize (That is, plan on adding to “demonstrated capacity” only after receipt of customer orders) (default strategy) Tradeoff: Profit for market share Executive S&OP is where the pros and cons of each strategy are discussed and decided upon.

    16. Forecasting conflicts

    17. Gaining Demand Consensus

    18. Executive S&OP Process

    19. Pre-Meeting (Continued) Consensus requires that everyone: 1. Has had their say, & 2. Feels they had opportunity to influence 3. Everyone can live with the outcome

    20. Done Properly . . . Simpler (Not Easier) Better Simple does not = EASY!!Simple does not = EASY!!

    21. Resolving Conflict aligns human energy . . .

    22. The Real Issue . . . Understanding Executive S&OP is simple. The hard part is . . . Behavior Change changing the way everyone does their jobs. Keys: - Full cross functional buy-in - Counter-experiential/intuitive - Comfort vs Change - Path of low risk

    23. Implementation Alternatives

    24. Thanks for Listening

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